HiFX Morning Update, June 13 2016

HiFX Morning Update, June 13 2016

NZDUSD 0.7050 -1.2%
NZDEUR 0.6265 -0.5%
NZDGBP 0.4950 0.5%
NZDJPY 75.35 -1.2%
NZDAUD 0.9560 -0.2%
NZDCAD 0.9020 -0.5%

The NZDUSD opens at 0.7050 (mid-rate) this morning.

The NZD gave back some of its weekly gains on Friday as risk aversion intensified. European equity markets were sold aggressively on Friday after the latest Brexit poll carried out by the Independent newspaper revealed a massive swing towards the Leave Europe Campaign. The survey of 2000 people showed 55% of those polled would now vote to leave the EU while 45% wish to remain. In a previous poll by the independent in April the Leave Campaign held a slender lead, 51% vs. 49%.

The weekends U.S. Consumer Sentiment data release showed a slight decrease in June edging down to 94.3 from 94.7 in May, economists had expected the index to fall to 94.0.

The week ahead will be all about the USD with the latest FOMC Statement sandwiched between the US retail sales and CPI data releases. On the domestic data front Thursday's global dairy trade auction followed by the quarterly GDP print will be closely monitored by investors.

Global equity markets closed out the week sharply lower- Dow -0.67%, S&P 500 -0.92%, FTSE -1.86%, DAX -2.52%, CAC -2.24%, Nikkei -0.40%, Shanghai -0.30%.

Gold prices gained 2.7% over the course of the week closing on Friday at $1,273 an ounce, WTI Crude Oil plunged 3% on Friday closing out the week at $49.07 a barrel.

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